Tausi Insider

Book-publishing powerhouse Simon & Schuster will let its $2.2 billion sale to Penguin Random House collapse on Monday, opening the door for a new suitor to try to clinch a deal, according to people familiar with the matter. The acquisition was blocked on Nov. 1 by a federal judge on antitrust grounds. Penguin was unable to convince Simon & Schuster to launch an appeal and extend their deal contract before it expires on Monday, the sources said. Penguin will owe Simon & Schuster a $200 million breakup fee as a result of the transaction falling apart. The sources requested anonymity ahead of official announcements this week. Bertelsmann and Paramount did not respond to requests for comment. The U.S. Justice Department had sued to stop the tie-up of the two publishers, which combined would have accounted for more than 25% of all print books sold in the United States this year. In its complaint it argued the deal would lead to lower earnings for authors because of the reduced...

Paramount Fine Foods founder and CEO Mohamad Fakih at one of his restaurants in Mississauga, Ont. on May 1, 2020. J.P. MOCZULSKI/Tausi Insider A legal battle between the owners of the Paramount Fine Foods restaurant chain is heading to court, as the company’s largest shareholders seek to oust its founder, Mohamad Fakih, and restructure the money-losing business they claim he has treated as a “personal fiefdom.” But Mr. Fakih has called the motion an “act of oppression” designed to wipe out millions in personal loans he made to keep the company afloat. A hearing is scheduled for Friday in Ontario Superior Court over a dispute between Mr. Fakih and two investors based in Kuwait, Ali Noureddine and Naeem Javed, who own a combined 75 per cent of the Toronto-based private company. The remainder is owned by Mr. Fakih and his family trust. The majority shareholders say Paramount is insolvent and needs to be restructured. Mr. Fakih and his family trust own 25 per cent of the company’s equity...

Penguin Random House head Markus Dohle will step down at the end of the year after a U.S. judge blocked a planned $2.2 billion merger of the world’s largest publisher and rival Simon & Schuster, the company said in a statement on Friday. He had resigned “at his own request and on the best of mutual terms”, it added. Nihar Malaviya, who is president and chief operating officer of Penguin Random House U.S., will take over as interim CEO from Jan. 1, the company said. Thomas Rabe, chief executive of Penguin’s German owner Bertelsmann, expressed full confidence in Malaviya, who he said had a chance of permanently becoming CEO. “We’re looking at that over the next year,” he told Reuters. He said the company would focus on smaller and mid-size acquisitions in the United States and other countries. “We will invest several hundred million euros in the acquisition of book publishers worldwide by 2025 as part of our Boost strategy,” he said. Bertelsmann initially said it would appeal the U...